Using a large dataset of firm-bank and ownership information for 23 European countries over 2008-2015, we study the dynamics of bank relationships after corporate acquisitions and the effects of changing banks on firm performance. Foreign acquirers do not rely on internal capital markets but...

This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans initiated before restatement, loans initiated after restatement have significantly higher spreads, shorter maturities, higher likelihood of being secured, and more covenant...

Based on ‘ agency theory' the present study argues that in a negotiated and collateral security based debt financing system where the need for debt financing of the firms is largely met by the banks in absence of active and liquid corporate debt market , there should be a two way relationship...

I study the capital structure of non-financial firms that own a financial subsidiary. In a panel of U.S. non-financial firms over 1984-2007 I find that a significant part of the overall Compustat non-financial universe maintains a financial subsidiary. Such non-financial firms have higher...

A salient feature of the Italian economy is its high reliance on small firms and local productive systems. For this reason, a relevant policy question is how the Italian production system can deal with the growing competition in global markets. The literature suggests that Italian economic...